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Stifel has initiated coverage of Dianthus Therapeutics (NASDAQ:DNTH) with a buy rating, emphasizing the high market potential of its lead drug candidate DNTH103.
The investment firm noted that it has projected the drug to achieve $2.7 billion in gross and $1.2 billion in risk-adjusted sales, an estimate they believe could be conservative, especially if the drug gains approval for MG, CIDP, and MMN.
Highlighting the company’s upcoming milestones, Stifel mentioned that a Phase 2 study for MG is expected to commence this month, with results anticipated in the second half of 2025. Furthermore, a Phase 2 study for MMN is scheduled to start in Q2, and a Phase 2 for CIPD is expected to commence in the second half of 2024.
Stifel also underscored the company’s financial position, stating that it currently holds approximately $389 million in cash, which is projected to sustain its operations until the latter half of 2027.
Setting an ambitious target, the investment firm placed the price target for Dianthus Therapeutics’ stock at $44.
Furthermore, it’s worth noting that Dianthus Therapeutics merged with Magenta Therapeutics last year, opening up new opportunities and expanding its potential.
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